In the stocks arena, managers mostly favored small companies over larger ones. Small stocks tanked during the market crash but recuperated much more quickly than their larger counterparts. The apparent cunning of many managers may be mostly due to the flip side of their earlier inadequacies. [ETFs vs. Index Funds: Which Is Right For You?]
Habitual underperformance in mutual funds is a reason we’re big fans of ETFs. Millions of investors, however, are going to be keeping close watch on actively managed funds to see if they can generate alpha. While active ETFs are a marked improvement over the mutual fund model – after all, you get lower fees, transparency and intraday liquidity – they’ll have to add value by beating their benchmarks, as well. [4 Reasons to Like Actively Managed ETFs.]
For more information on mutual funds, visit our mutual funds category.
Max Chen contributed to this article.